California establishes fund amid anticipated Trump policy challenges

California lawmakers convened a special legislative session on Dec. 2, to establish a $25 million litigation fund to protect state interests from potential federal policy changes under the incoming Trump administration.

Gov. Gavin Newsom called the session to bolster the state's legal resources in anticipation of possible federal actions that could affect California's policies on fundamental civil rights, reproductive freedom, environmental protection, and working families, including immigrant families. 

"California is a tent pole of the country – from the economy to innovation to protecting and investing in rights and freedoms for all people," Newsom said. "We will work with the incoming administration, and we want President Trump to succeed in serving all Americans. But when there is overreach, when lives are threatened, when rights and freedoms are targeted, we will take action. And that is exactly what this special session is about - setting this state up for success, regardless of who is in the White House."

The proposed fund would provide additional resources to the California Department of Justice and state agencies to defend against what state officials describe as unconstitutional federal overreach and challenge illegal federal actions in court.

Attorney General Rob Bonta said the stakes are high for California. "With potentially billions of dollars in federal funding on the line if the President-elect follows through on his promises, we must be – and we are – ready to act on day one," he said. "I am looking forward to working with Governor and the Legislature to ensure my office has the resources we need to meet the demands of the moment and robustly defend California's people, progress, and values."  

State officials point to California's previous legal battles with the Trump administration as justification for the new fund. From 2017 to 2021, the California Department of Justice filed 122 lawsuits against the Trump administration, with the state investing $42 million to support this litigation.

Assembly Budget Chair Jesse Gabriel cited this history in supporting the new initiative. "While we always hope to collaborate with our federal partners, California will be ready to vigorously defend our interests and values from any unlawful action by the incoming Trump Administration," Gabriel said, "We know from President-elect Trump's statements – and from the more than 120 lawsuits that California filed during the first Trump Administration – that we must be prepared to defend ourselves. We're not going to be caught flat-footed." 

Past legal actions yielded significant returns for the state. In one case, California recovered nearly $60 million in federal public safety grants through litigation. According to state officials, another successful lawsuit challenging delayed energy efficiency standards is expected to generate more than $8 billion in consumer energy savings over 30 years.

Senate President Pro Tem Mike McGuire emphasized the state's willingness to cooperate with federal authorities while maintaining readiness to protect California's interests. "Where we can work with the incoming federal administration, we will," McGuire said. "Where the rights, safety, and economic security of Californians may be in danger, we will be prepared, and we will respond," he said. "New and returning members of the Senate all took a solemn oath today to defend California. We believe in that oath. And we will act accordingly with the Governor and our colleagues in the Assembly."

The litigation fund proposal is part of broader state efforts to maintain California's policy positions on reproductive healthcare and environmental protection issues. State leaders say the fund will help safeguard federal funding for disaster relief, healthcare programs, and other essential services that serve millions of Californians.

Despite the defensive posture, Newsom's administration maintains it seeks collaboration with the incoming federal leadership where possible. The Governor recently visited Washington, D.C., for meetings at the White House and on Capitol Hill to discuss healthcare initiatives, mental health programs, clean air policies, and disaster relief funding.

The proposed legislation is expected to move through committee hearings in the coming weeks. Legislative leaders aim to have the bill reach Newsom's desk for signature before the new presidential administration takes office on Jan. 20, 2025.

Since 2019, California has positioned itself as a leader in advancing civil rights, reproductive healthcare protections, climate action, and support for working families, including immigrant communities. State officials say the special session and litigation fund are designed to preserve this progress regardless of federal policy changes.

The $25 million fund would represent a smaller investment than the $42 million California spent on Trump-era litigation, but state leaders say it provides crucial resources for immediate response to potential federal actions affecting state programs and policies.

The special session marks an early response to the upcoming transition in federal leadership, with California lawmakers working to establish legal safeguards before any specific federal policy changes are implemented. The state's proactive approach reflects its experience with previous federal-state conflicts and its determination to maintain policy independence on key issues affecting its nearly 40 million residents.